Fair Value Journal Entries, Avellable-for-Sale Investments Hurricane Inc. purchased a portfolio of available-for-sale securities in Year 1, its first year of operations. The cast and fair value of this portfolia on December 31, Year 1, was follows: Number of Shares Name Tornado Inc. Tsunami Corp Typhoon Corp. Total Total Fair Value Total Cost 1,350 $10,030 $20,000 800 26,240 28,600 250 7,250 $51,580 6,890 $55,570 On June 12, war 2, Hurricane purchased 500 shares of Rogue Www Inc. at $20 per share plus $50 brokerage commisi. a. Provide the journal entries to record the following: 1. The adjustment of the available-for-sale security portfolio to fair value on December 31, Year 1. 2. The June 12, Year 2, purchase of Rogue Wave Inc. stock. Year 1, Dec. 31 Year 2, June 12 b. How are unrealized gains and losses treated differently for available-for-sale securities than for trading securities? Unrealized gains and losses for available-for-sale securities reported as a credit (positive) or debit (negative) balance in the section. As a result, the changes in fair value are not reflected on the as is the case with trading securities.